VOIP and your home business

Filed in archive home office tools on November 30, 2006

Are you thinking of using voice internet protocol (VOIP) to improve the operations of your home business? Here's what you need to know.

What is VOIP?
VOIP is the transmission of voice calls or conversations over an internet connection as opposed to a traditional phone line. VOIP services usually cover both long-distance and local voice calls as well as broadband internet service.

Advantages of VOIP
VOIP allows you to save a lot on your phone bills and makes your communications systems easier to manage. Some benefits of VOIP include the ability to take calls from any place with an adequate internet connection, and free use of services such as caller ID, automatic redial, call forwarding, and three-way calling.

Disadvantages of VOIP
At present, the use of VOIP is generally restricted to voice calls; fax services have not yet been perfected, although better technology is currently being developed. Another disadvantage of VOIP use is its dependence on internet service. A poor-quality internet service provider can really weaken the effectiveness of VOIP. On the other hand, it is possible to arrange for your VOIP services to use regular phone lines as well as an internet connection, ensuring continuous phone service.

VOIP options
You can use VOIP for your home business in two ways: you can opt for hosted service or for trunking service. With hosted service, your VOIP provider will host all communication functions at its office, not at your home. You will need to buy IP phones to use this service. With trunking service, your existing phones are used for VOIP. It costs less than hosted service but does not include the full range of VOIP functionalities.

VOIP can help your home business achieve both substantial savings and improved operations. There is no one-size-fits-all VOIP solution for every home business, however. You need to consult a VOIP service provider to determine which services are best suited to the needs of your specific home business.

Sources:

Forbes

Wikipedia